Motivational Factors, Entrepreneurship, Gender, and Parental Background: Evidence From the Tailor’s Guild at Sunan Giri

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China-USA Business Review, ISSN 1537-1514 June 2013, Vol. 12, No. 6, 627-635

Motivational Factors, Entrepreneurship, Gender, and Parental Background: Evidence From the Tailor’s Guild at Sunan Giri

Traditional Market, Jakarta, Indonesia

Agung Wahyu Handaru, Agung AWS Waspodo, Claudia Carolina State University of Jakarta, Jakarta, Indonesia

Sixty nine entrepreneurs (tailor store owners) at Sunan Giri traditional market were surveyed on their motivational factors, gender, and parental background; whether they owned a business or not. Comparison was made on the basis of McClelland’s need for achievement, need for power, and need for affiliation. These variables linked to the parental influences and also gender. Result shows that: (1) males’ need for achievement is different from females;

(2) males’ need for power is different from females; (3) males’ need for affiliation is different from females; (4) males’ need for achievement whose parents are also an entrepreneur is different from the other males whose parents are not an entrepreneur; (5) males’ need for power whose parents are also an entrepreneur is the same with the other males whose parents are not an entrepreneur; (6) males’ need for affiliation whose parents are also an entrepreneur is different with the other males whose parents are not an entrepreneur; (7) females’ need for achievement whose parents are also an entrepreneur is the same with the other females whose parents are not an entrepreneur; (8) females’ need for power whose parents are also an entrepreneur is the same with the other females whose parents are not an entrepreneur; and (9) females’ need for affiliation whose parents are also an entrepreneur is the same with the other females whose parents are not an entrepreneur.

Keywords: need for achievement, need for power, need for affiliation, gender, parental background

Introduction

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Informal sector business has become a great base for Indonesia’s economy survival in the last global crises.

In fact, the informal sector is on the grow and poised as an alternative means of living towards attaining prosperity for lower income bracket Indonesians.

According to Jakarta Provincial data in the field of informal private small business and service, the growth is astonishing, by 2006 entrepreneurs engaged in private small business have reached 1,223,207 employees (Centre of Statistical Bureau, 2006). Many factors fostered the growth of entrepreneurship around the globe.

Empirical studies of Lee (1997), Setyawan (2009), Rahman (2011), Fuad and Bohari (2011), and Indarti and Wulandaru (2003) have confirmed that the need for achievement, need for power, and need for affiliation are

Agung Wahyu Handaru, MM, Management Department, State University of Jakarta.

Agung AWS Waspodo, MPP, Management Department, State University of Jakarta.

Claudia Carolina, SE, Management Department, State University of Jakarta.

Correspondence concerning this article should be addressed to Agung Wahyu Handaru, Management Department, State University of Jakarta, Indonesia. E-mail: agung_1178@yahoo.com.

DAVID PUBLISHING

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MOTIVATIONAL FACTORS, ENTREPRENEURSHIP, GENDER 628

dominant factors to be self-employed in many sectors. Self-employment is also related to other factors such as gender and parents’ experiences in managing small private business. Studies conducted by Lee (1997), Justo et al. (2006), Robichaud et al. (2010), Fuad and Bohari (2011), Kalyani and Kumar (2011), Cotleur (2003), and Leroy et al. (2009) also revealed that gender has a strong relationship with intrepreneurial intentions. Another studies of self-employment also confirm that parental background is strongly influenced entrepreneurial intentions of their children. These findings can be found in empirical studies of Cotleur (2003), and Sukmana (2008). Apart from other researchers, comparison with McClelland’s need for achievement, need for power, and need for affiliation will be the basis of this paper, and the study will also try to examine the contribution of gender and parental background.

Research Problems

(1) Is there any difference in the need for achievement between male and female entrepreneur at Sunan Giri traditional market?

(2) Is there any difference in the need for power between male and female entrepreneur at Sunan Giri traditional market?

(3) Is there any difference in the need for affiliation between male and female entrepreneur at Sunan Giri traditional market?

(4) Is there any difference in the need for achievement between male entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and male entrepreneur whose parents are not entrepreneurs?

(5) Is there any difference in the need for power between male entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and male entrepreneur whose parents are not entrepreneurs?

(6) Is there any difference in the need for affiliation between male entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and male entrepreneur whose parents are not an entrepreneur?

(7) Is there any difference in the need for achievement between female entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and female entrepreneur whose parents are not entrepreneurs?

(8) Is there any difference in the need for power between female entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and female entrepreneur whose parents are not entrepreneurs?

(9) Is there any difference in the need for affiliation between female entrepreneur at Sunan Giri traditional market whose parents are also entrepreneurs and female entrepreneur whose parents are not entrepreneurs?

Literature

Conceptual models of entrepreneurship and motivation have been discussed over decades. Motivation is a drive within an individual to move and modified his or her behaviour (Uno, 2007, p. 3). It means that motivation also needed for those who want to move from unemployment to self-employed. Another publication of Walgito (as cited in Yulianti, 2010, p. 7) Mentioned that motivation is a driving force, which is a very important factor to build a start-up business. Being entrepreneur is majorly caused by need fulfillment by individuals, and therefore motivation also closely related to it (Koontz, as cited in Djati, 1999, p. 26).

Motivational theories also widely discussed especially from McClelland’s point of view. The aspect of needs in this theory generally used by many researchers as a basis and fundamental reasoning to explain entrepreneurial intentions and development of start-up business. The relationship between entrepreneurial intention and need

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MOTIVATIONAL FACTORS, ENTREPRENEURSHIP, GENDER ⁶²⁹

for achievement can be seen from general view that one with high need for achievement commonly is a creative person, and usually pay attention to risk and behaviour which are needed to start up a new business (McClelland, as cited in As’ad, 2002, p. 53). Apart from theoretical view, many empirical studies such as Rahman (2011), Lee (1997), Setyawan (2009), and Gamage et al. (2003) confirmed that the need for achievement, as well as the need for power and affiliation, influenced the entrepreneurial motivation.

The word “entrepreneur” is derived from the French verb “entreprende” (Girand, as cited in Kirkwood, 2004, p. 16), means to undertake, to attempt, to try. On the other hand, an entrepreneur can be described as a person (or group of people) who creates a new business (for profit) and employs at least one other paid employee (Kirkwood, 2004, p. 16). On the larger scale, there is no doubt that entrepreneurship saves Indonesia’s economy during the hardship of global crisis. Some entrepreneurs struggle with unpleasant bureaucracy in Indonesia, but somehow they can make it through. With all good things about them, unfortunately only few people are willing to start up a new business. This problem could be related to the fact that being an entrepreneur is not that easy. Drucher (as cited in Wijaya, 2007, p. 119) explained that being entrepreneur means hard work, maintaining high job spirit, efficient in work process, and being able to keep up with technology. Another author argued that an entrepreneur should encourage people’s economy, willing to take risks, and capable to create an innovation (Schumpeter as cited in As’ad, 2002, p. 145). Similar with previous statements, Hadipranata (as cited in Wijaya, 2007, p. 199) confirmed that entrepreneurs are risk-takers, and capable to gain profit from that risk.

Another difficulty in self-employment related with capability to face the uncertainty of the business environment. Many people who want to start a new business fears to deal with the uncertainty of law enforcement, regulations, as well as consumer behaviour. Zimmerer and Scarborough (as cited in Suryana, 2006, p. 15) has noted that entrepreneurs should be capable to deal with uncertainty and change it to become opportunities. Zimmerer (2008, p. 57) also argued that creativity is an important feature for every entrepreneur which is not easy to apply.

The study about entrepreneurial intentions and motivation usually includes gender. A number of authors argue that males tend to have stronger motivation to be an entrepreneur in some regions, or in other words, there is a difference between males and females in term of self-employment motivation (Mazzarol et al., 1999;

Kolvereid, 1996; Matthews & Moser, 1996; Schiller & Crewson, 1997; as cited in Indarti & Rostiani, 2008, p.

10). From a gender perspective, females are less interested in starting a new business compared to males (Mazzarol et al., 1999). Another research finding related with entrepreneur and gender come from Kolvereid (1996), which explained that the male’s entrepreneurial intention is higher than female. In terms of entrepreneurial success, males also different from females (Schiller & Crawson, 1997).

Although many factors are influencing entrepreneur success, parental background obviously takes an important part. In many ways, parents play an important role to develop the intention and motivation of entrepreneurship for their children. Successful entrepreneurs usually have parents who are also an entrepreneur (Benedicta, as cited in Sukmana, 2008, p. 4). This is not surprising because children usually positioned their parents as a role model. At the same time parents tend to promote some benefits of being self-employment such as flexibility of time, autonomy, and economy reliance to their children (Staw, as cited in Sukmana, 2008, p. 4).

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Hypothesis Development

Motivation is a driving force for virtually every action that people make, including decision to start a new business. Furthermore, one of the main reasons why people are willing to be an entrepreneur is because they want to fulfill their need for achievement, power, and affiliation. In line with the previous statement, entrepreneurs tend to seek recognition and good reputation from the society, which commonly occured from people who have a high need for achievement (Dej, 2010). One empirical study of As’ad (2002) shows that successful entrepreneurs usually have a strong motivation and high need for achievement. From all discussions above, the contribution of the social-motives to entrepreneurship is obviously big, and therefore it plays an important part in measuring entrepreneurial intention and motivation.

Further study about motivation usually includes gender. The main reason why gender is commonly involved in the measurement of motivation is based on the fact that male and female are quite different in their motives of self-employment. Many researchers such as Batory (2004), Kepler and Shane (2007), and Leroy et al. (2009) confirmed that male and female are different in terms of their entrepreneurial motivation. Another finding from King and Solomon showed that males are more likely to intend to start a business.

Many researchers also emphasized the importance of parental background in the measurement of entrepreneurial intention. Some empirical studies such as Staw (as cited in Sukmana, 2008, p. 4) revealed that someone who is willing to start up a new business usually has parents who are also an entrepreneur. Many discussions have noted that the spirit of economy resilience and flexibility usually taught by parents to their children. Therefore, one of the reasons why people become an entrepreneur is because they want to follow what their parents did. In line with the previous statement, King and Solomon also mentioned that family background is important in starting up a new business.

In this study, social motivation theory will be the basis of measurement which is linked to gender and parental background. The focus of this study is to test whether there is a difference between need for achievement, power, and affiliation when linked with gender and parental background.

Research Method

The researchers administered a questionnaire to 69 store owners in the Tailor’s Guild at Sunan Giri Traditional Market. The distributions of the samples are as follows:

 Males: 43 (62.3%);

 Females: 26 (37.7%);

 Parents had owned a business: 40 (58%);

 Parents had never owned a business: 29 (42%).

The research used to compare means of two populations for an independent sample method to test all hypotheses. This method is used to compare the means from the respondent’s score. This test commonly called z-test since the sample is larger than 30. Rejection rules for z-test are as follows :

 Reject Ho if p-value < α;

 Accept Ho if p-value > α.

Results and Discussions

Descriptive analysis shows that: (1) the average income per month of respondents is more than five

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MOTIVATIONAL FACTORS, ENTREPRENEURSHIP, GENDER ⁶³¹

million rupiah or USD 537.6. This result shows that tailor business is profitable. For some people in Indonesia, five million rupiah per month is quite a lot, and can be categorized as top middle class economy; (2) 73%

respondents started the business with their own money, 20% from the bank, and the rest (7%) are jointly funded among friends; (3) respondents majorly came from Sumatera Barat (48%), followed by Yogyakarta (15%), and the smallest are from Banten (3%); and (4) 42% of respondents have been working in Sunan Giri market for more than 10 years, 20% of respondents have been working for six to 10 years, and only 10% of respondents who have worked less than one year.

Table 1 shows the summarized values of the means cooperation between the male and female’s need for achievement. Since the score of equality of variance is 0.048, which is less than 0.05, it means that the equal variances are not assumed. Therefore, we have to use 0.002 as significance 2-tailed to determine Ho rejection.

Since the value is less than 0.05, then Ho is rejected. It means that there is a difference in need for achievement between male and female store owner at Sunan Giri Traditional Market.

Table 1

T-test of Need for Achievement Between Male and Female Levene’s test for equality of

variances t-test for equality of means

F Sig. T Df Sig. (2-tailed)

N’ach

Equal variances assumed 4.071 0.048 3.062 67 0.003 Equal variances not

assumed 3.162 58.214 0.002

Table 2 shows the summarized values of the means comparation between male and female’s need for power. Since the score of equality of variance is 0.652, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.035 as significance 2-tailed to determine Ho rejection.

Since the value is less than 0.05, then Ho is rejected. It means that there is a difference in need for power between male and female store owner at Sunan Giri Traditional Market.

Table 2

T-test of Need for Power Between Male and Female

Levene’s test for equality of

N’Pow

assumed 2.122 50.754 0.039

Table 3 shows the summarized values of the means comparation between male and female’s need for power. Since the score of equality of variance is 0.002, which is less than 0.05, it means that the equal variances are not assumed. Therefore, we have to use 0.025 as significance 2-tailed to determine Ho rejection.

Since the value is less than 0.05, then Ho is rejected. It means that there is a difference in need for affiliation between male and female store owner at Sunan Giri Traditional Market.

Table 4 shows the summarized values of the means comparation of need for achievement (parental background included) for male entrepreneur. Since the score of equality of variance is 0.167, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.017 as significance

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2-tailed to determine Ho rejection. Since the value is less than 0.05, then Ho is rejected. It means that there is a difference in need for achievement amongst males store owner when it is associated with his parental background.

Table 3

T-test of Need for Affiliation Between Male and Female Levene’s test for equality of

N’Aff

Equal variances assumed 10.047 0.002 -2.088 67 0.041 Equal variances not

assumed -2.286 65.853 0.025

Table 4

T-test of Need for Achievement (Parental Background Included) for Male Entrepreneur Levene’s test for equality of

N’ach

Equal variances

assumed 1.977 0.167 -2.480 41 0.017

Equal variances not

assumed -2.573 40.494 0.014

Table 5 shows the summarized values of the means comparation of need for power (parental background included) for male entrepreneur. Since the score of equality of variance is 0.550, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.135 as significance 2-tailed to determine Ho rejection. Since the value is more than 0.05, then Ho is accepted. It means that there is no difference in need for power amongst males store owner when it is associated with his parental background.

Table 5

T-test of Need for Power (Parental Background Included) for Male Entrepreneur Levene’s test for equality of

N’Pow

Equal variances

assumed 0.363 0.550 -1.525 41 0.135

Equal variances not

assumed -1.554 39.026 0.128

Table 6 shows the summarized values of the means comparation of need for affiliation (parental background included) for male entrepreneur. Since the score of equality of variance is 0.515, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.047 as significance 2-tailed to determine Ho rejection. Since the value is less than 0.05, then Ho is rejected. It means that there is a difference in need for affiliation amongst males store owner when it is associated with his parental background.

Table 7 shows the summarized values of the means comparation of need for achievement (parental background included) for female entrepreneur. Since the score of equality of variance is 0.499, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.676 as significance 2-tailed to determine Ho rejection. Since the value is more than 0.05, then Ho is accepted. It means that there is no difference in need for achievement amongst females store owner when it is associated with her parental background.

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MOTIVATIONAL FACTORS, ENTREPRENEURSHIP, GENDER ⁶³³ Tabel 6

T-test of Need for Affiliation (Parental Background Included) for Male Entrepreneur Levene’s test for equality of

N’Aff

assumed -2.063 37.900 0.046

Table 7

T-test of Need for Achievement (Parental Background Included) for Female Entrepreneur Levene’s test for equality of

N’ach

assumed -0.438 23.741 0.665

Table 8 shows the summarized values of the means comparation of need for power (parental background included) for female entrepreneur. Since the score of equality of variance is 0.778, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.668 as significance 2-tailed to determine Ho rejection. Since the value is more than 0.05, then Ho is accepted. It means that there is no difference in need for power amongst females store owner when it is associated with her parental background.

Table 8

T-test of Need for Power (Parental Background Included) for Female Entrepreneur Levene’s test for equality of

N’Pow

assumed -0.436 22.075 0.667

Table 9 shows the summarized values of the means comparation of need for affiliation (parental background included) for female entrepreneur. Since the score of equality of variance is 0.404, which is more than 0.05, it means that the equal variances are assumed. Therefore, we have to use 0.177 as significance 2-tailed to determine Ho rejection. Since the value is more than 0.05, then Ho is accepted. It means that there is no difference in need for affiliation amongst females store owner when it is associated with her parental background.

Table 9

T-test of Need for Affiliation (Parental Background Included) for Female Entrepreneur Levene’s test for equality of

N’Aff

assumed 1.330 17.800 0.200

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Based on hypotheses test results, the social-motives between males and females at Sunan Giri Traditional Market are different. This finding shows that gender heavily influenced the entrepreneurial motivation, and therefore it caused the difference of motivation between them. This result in line with Kepler and Shane (2007) who confirmed that there is a difference between male and female motivation in setting up a business. Another findings of Batory (2004) are also in line with this research. He argued that there is a difference in terms of work motivation between male and female. Similar with Batory, Robiclaud confirmed that there is a difference in growth orientation between male and female, which is closely related with entrepreneurial motivation.

Another result in this research shows that parental background has influenced the social-motives of male and female entrepreneur at Sunan Giri traditional market. It indicates that parental background has an important role in creating entrepreneurial motivation for their children.

Conclusions

The differences in motivation and entrepreneurial intention between male and female in Sunan Giri Traditional Market are relatively normal, especially when it is viewed from Indonesian culture and some other countries as well. Males are urged to have a larger responsibility to earn money for their family, and therefore they are more eager to work, whether in formal or informal sector like entrepreneur. Another important finding shows that the majority of respondents are from West Sumatera. It probably happens because of the culture of that region itself. West Sumatera people are well known as entrepreneurial society, and it includes their women and wives. It probably happens also because they have a unique matrilineal culture, which is commonly called

“mother line”. This culture puts women or wives as the backbone of the family, and therefore women or wives from West Sumatera are usually working and having a business in order to provide family welfare. This culture also encourages some parents to coach their children to be an entrepreneur. Future research should examine another tailor’s guild to get a deeper understanding about entrepreneurial motivation in this sector. This can be done by expanding the area of research to suburban to get more tailor’s guild. Another suggestion to further research is to examine the influence of ethnicity to entrepreneurial motivation in Indonesia especially West Sumater.

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